The oil dropped to $73 a barrel amid sluggish crude demand as investors continue cautious approach with concerns about the health of the global economy. Oil prices recovered from previous decline on US inventory data along with news of the latest move by China to tighten its monetary policy and sustain the economic growth.

April Brent Crude reaches US$72.85/barrel while US light sweet crude for April delivery traded at US$74.10/barrel on the New York Mercantile Exchange. Markets in China, Hong Kong, Taiwan, South Korea, Singapore, and Malaysia were closed for the Lunar New Year. Trading in the U. S. is also closed Monday for the Presidents Day holiday.

The US Energy Information Administration (EIA) released a greater than expected increase of 2.4 million barrels in its crude stockpiles report. Gasoline stocks rose by 2.4 million barrels which also was more than expected. In its quest to sustain the ongoing growth and prevent the economy from overheating the world's second largest energy consumer China has raised the reserve requirements for banks by half a percentage point.

Greece debt crisis has caught the eye of traders as last week the European Union signaled they would help Greece, but didn't give details about the assistance. The debt worries have helped the U. S. dollar make significant gains against euro which in turn has blocked oil prices from rising as a stronger dollar makes crude more expensive for investors holding other currencies.